Exercise 4-11A How the allocation of fixed cost affects a pricing decision LO 4-3 Gibson...
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Accounting
Exercise 4-11A How the allocation of fixed cost affects a pricing decision LO 4-3 Gibson Manufacturing Co. expects to make 31,200 chairs during the 2017 accounting period. The company made 4,100 chairs in January. Materials and labor costs for January were $16,500 and $24,400, respectively. Gibson produced 1,400 chairs in February. Material and labor costs for February were $10,000 and $13,800, respectively. The company paid the $748,800 annual rental fee on its manufacturing facility on January 1, 2017. Required Assuming that Gibson desires to sell its chairs for cost plus 25 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) January February Price
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